question archive a) The strike of a particular straddle is halfway between the two strikes of a particular strangle

a) The strike of a particular straddle is halfway between the two strikes of a particular strangle

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a) The strike of a particular straddle is halfway between the two strikes of a particular strangle. What trading position is created from a short position in that strangle and a long position in that straddle of the same time to maturity?

b) An investor thinks that there will be a big jump in a stock price but is uncertain as to the direction. Identify six different strategies the investor can follow and explain the differences among them.

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